Letting of House to sister concern's em'ee
This query is : Resolved
Shefali Bajpai
(Querist)
28 December 2008
A Ltd. firm had let out the house property owned by it to the employees of its sister concern, B Ltd. Under what head of income should the income from the house property of income from the house property of A Ltd., occupied by the employees of its sister concern B Ltd., be assessed? Can A ltd., claim that such income is not chargeable under the head “Income from House Property”, on the ground that the property has been occupied for the purpose of its business or profession?
C A GROUP COACHING
(Expert)
28 December 2008
PROPERTY OWNER IS A LTD. & GIVEN TO EMPLOYEES OF B LTD.
IN MY OPIION IT WILL BE ONLY & ONLY INCOME FROM H/P FOR A LTD
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
IN MY OPIION IT WILL BE ONLY & ONLY INCOME FROM H/P FOR A LTD
CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674
K V Subba Rao
(Expert)
28 December 2008
Visit https://www.taxmann.com/DitTaxmann/IncomeTaxActs/2005ITAct/casesec22.htm
to note the following:
"...income from property let out to the employees of the sister concern by the assessee cannot be assessed as income from business and depreciation allowed on such properties, but instead should be treated as income from property under section 22 - CIT v. T.V. Sundaram Iyengar & Sons Ltd. [2004] 271 ITR 79 (Mad.)."
to note the following:
"...income from property let out to the employees of the sister concern by the assessee cannot be assessed as income from business and depreciation allowed on such properties, but instead should be treated as income from property under section 22 - CIT v. T.V. Sundaram Iyengar & Sons Ltd. [2004] 271 ITR 79 (Mad.)."
CA Tilak Raj Sharma
(Expert)
29 December 2008
And further if the houses are given free then it will be considered as used for the purpose of business and profession.
Shefali Bajpai
(Querist)
30 December 2008
Thanks to all.
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